Seller's Checklist for a Dealership Buy-Sell | Compli.com

Seller's Checklist for a Dealership Buy-Sell

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Article: Seller's Checklist for a Dealership Buy-Sell

Article Date: Friday, March 18, 2011

Article Source: MD Johnson Inc

buysell_chcklist_3pg_mar18b.pdf

Key Documents Needed to Prepare for a Buy-Sell:

• Last 4 years of Financial Statements
• Current Fixed Asset Schedule and details (if not on schedules)
• 2009 end of year fixed asset schedule and details (if not on schedules) do not include disposed items
• Photos of fixed assets (should be organized to schedule recommend a numbering system)
• Depreciation of Fixed Assets
• Methodology of Depreciation
• Manufacturer Sales and Service Agreement with all addendums
• Any letter sent to manufactures related to the franchise agreement
• All vendor contracts
• All Leases
• Name, address and phone numbers for your floor plan vendor
• A copy of your last floor plan reconciliation
• Copies of all 2010 CSI and SSI reports
• Your employee handbook
• A copy of a vehicle invoice from manufacturer and the method of accounting in regards to holdback, floor plan credits, advertising allowance
• An explanation of how your PDI’s get submitted and paid along with your method of accounting
• A list of all open Repair Orders and Parts Tickets
• A summary report of your Parts Inventory to include turns, investment and obsolescence
• Your last reconciliation of Gas Oil and Grease
• Your last reconciliation of Parts Inventory to Accounting
• Your last reconciliation of appreciation/depreciation of Parts Inventory
• All current month accounting schedules (no zero balances)
• Current month Trial Balance
• Most current appraisal of property
• Most current environmental information (Phase I if performed by lender)
• Site Plan (should be with appraisal)
• All documents on pension or 401k plan, including name address and phone number of Plan administrator
• A copy of your health plan along with your policies (if not in your employee handbook)
• Prepare an excel spreadsheet for employee information
• A copy of your last Sales Tax Audit
• A copy of your demo policy (if not in your employee handbook) as well of the demo schedule
• A copy of your service loaner policy, forms used, as well as the service loaner inventory schedule
• A copy of your rental car policy, forms used, as well of the rental car inventory schedule
• All information related to any litigation or licensing infractions, or threats of litigation or infraction correction notices
• Copies of all Accountant reports for 2009, 2008, 2007 and current year to include audit work papers
• Copies of Company Board of Director meeting minutes for the last 18 months
• Copies of business plans, strategies, studies, projections, or estimates prepared by the Company or Manufacturer
• Copies of Manufacturer’s dealer statements for December 2009 and Current Month
• Listing of all bank accounts and a description of purpose for each, to include a copy of the bank reconciliations (with statements) for September 2010
• Detail on all customer deposits for special order parts or vehicles
• Detail on all contracts in transit with explanation on any items over 15 days old
• Detail on all Finance Reserve receivables over 45 days old
• Detail on all Warranty receivables
• Detail on all open accounts receivable balances
• Detail on all Finance Product receivables and outstanding cancelations
• Summary of 2009 and 2008 and current YTD Finance Product Cancelations (categorize by type and amount)
• Detail on all Prepaid items
• Detail on all vendor deposits
• Detail on all Accounts Payable debit balances
• Complete spreadsheet labeled Vehicle Inventory
• Provide copies of all manufacturer invoices that relate to this spreadsheet
• September 2009 Financial Statements
• September 2010 Financial Statements
• Add Back Schedules
• Photos of Dealership